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EU considers setting up European micro-credit fund

The European Commission has presented its initiative to improve the legal and institutional environment for “micro-credit” in the European Union. Loans under EUR 25,000 qualify as micro-credit. The initiative aims to make credit more easily available to small companies and unemployed or inactive people seeking to set up a business. Part of the initiative would be the creation of a fund, managed by the European Investment Fund, which would provide expertise and financial support to non-bank micro-finance institutions. The new fund would receive EUR 10 to15 million from the European Regional Development Fund to finance the loan activities of these institutions.